9 Facts About NFTs You Didn't Know

Non-fungible tokens (NFTs) have taken the world by storm since 2020. They represent true digital ownership of items and goods and can represent any asset, including files, precious metals, stocks, and more. However, there is much to learn about NFTs and why this industry continues to grow globally.

$41 Billion Was Spent On NFTs in 2021

One sign of ongoing NFT market growth is the sheer amount of money spent on non-fungible tokens. The year 2021 was the best period for the industry to date, resulting in $41 billion in overall spending. Part of that growth comes from the weekly trading volume of non-fungible tokens, which often ranged between $10–$20 million.

The Ongoing Success of Bored Ape Yacht Club

NFT enthusiasts readily acknowledge Bored Ape Yacht Club (BAYC) as one of the most popular collections on the market. It is also a collection with various celebrity-level owners, including Eminem, Neymar Jr., Paris Hilton, Justin Bieber, Marc Cuban, Madonna, Post Malone, and Shaquille O'Neal. Celebrities bring mainstream attention to this collection and the broader NFT industry.

Interestingly, the asset with the highest value is Bored Ape #2087, the 9th-rarest ape in the collection. It was purchased for the price of 769 ETH — or over $2.3 million — in September 2021 by an anonymous buyer.

NFTs Are Unique

Many people struggle with the concept of how NFTs are unique. The average person thinks they can right-click an NFT image, save it to their hard drive, and "own" the asset. However, while images can be saved that way, the ownership of the non-fungible token does not come with it. Nor can one trade one NFT directly for another, as these assets are not fungible.

Much of the price appreciation of NFTs comes from that non-fungible approach. These assets are worth as much as one is willing to pay for them, enabling users to set the market prices. NFTs have the rarity and collectability of Pokemon cards but also provide a digital certificate of ownership stored on the blockchain.

Singapore, Hong Kong, and China Are Big NFT Hubs

For non-fungible tokens, there are three primary activity hubs: China, Singapore, and Hong Kong. Singapore has a somewhat competitive edge where NFTs are concerned. The country's central bank decided not to regulate non-fungible tokens, and overall interest in non-fungible tokens has skyrocketed since that decision.

You Can See an NFT's Entire Ownership History

As non-fungible tokens are issued on the blockchain, it is possible to see their entire lifespan without needing special software. Using popular block explorers like Etherscan or NFT marketplace OpenSea will give you a complete picture of who owned a particular NFT in the past and for how long. Blockchains are decentralized and transparent by default — all transactions and data are permanently recorded on this ledger, and NFTs are no exception.

NFT Real Estate Is Big Business

While the current NFT landscape primarily caters to digital artwork, the technology applies to many potential use cases. One such concept is tokenizing real estate on the blockchain and the sale of virtual land plots in the metaverse. Early adopters and speculators have shelled out significant money to acquire virtual land plots in The Sandbox, Decentraland, and other metaverses.

The ongoing demand for virtual land plots continues, with certain plots selling for $1 million or more. Owners can use that land however they see fit — building houses, theme parks, creating game worlds, introducing decentralized finance concepts, and more.

Twitter CEO Jack Dorsey Sold an NFT of His First Tweet for $2.9 Million

In theory, it is possible to tokenize anything into a non-fungible token, including Tweets. The first tweet by then-Twitter CEO Jack Dorsey sold for $2.9 million as an NFT in March 2021. Bridge Oracle CEO Sina Estavi is the current owner. The $2.9 million from the sale were donated to various charities fighting poverty, confirming NFTs can be used for a social cause.

Ethereum Supports the Majority of NFTs

It is possible to create non-fungible tokens on dozens of blockchains. However, Ethereum remains the go-to network to mint and trade NFTs. The interest in NFT exposure has increased the ETH value in recent years. As the ETH value rises, buying NFTs on Ethereum is considered a future investment in both the NFT asset and Ethereum's ETH.

Smart Contracts Can Convert Anything Into an NFT

Any digital item or asset can become an NFT with the help of blockchain technology and smart contracts. Most attention focuses on selling digital art and collectibles, but the technology is incredibly versatile. Anything can in theory be tokenized, including domain names, assets, Tweets, music, movies, and more. With smart contracts and NFTs, claiming and proving ownership over such items has become much more straightforward.